Dear Mr Tan,
I read your blog.
Have you heard about this UFUN (www.ufunclub.com)?
A lot of people (Spore, Msia, Thai) are investing and claim they are getting good returns in the first few months. Is this kind of investment safe?
They give dividends (in the form of e-token) to members and the returns are good.
They are inviting a lot of new members to join.
Each investment can be US$500, US$1000, US$5000, US$10000 and US$50000.
Pls comment if you know about this UFUN scheme and if some people have already fallen prey to this scheme.
REPLY
I have not heard about this scheme. My comments below apply to questionable schemes in general and are not related to this specific scheme.
I would advice people to avoid investing money in schemes that are not regulated by the authority. It is easy to give your money away, but quite difficult to get it back.
Even if you are getting back the return, in the form of dividends or principle, remember that the money that is used to pay you may come from the investments of other people. Similarly, your money may be used to pay off the earlier investors.
This type of scheme is called a Ponzi scheme. The Ponzi scheme will grow as more and more people join. Eventually, when there are more people wishing to withdraw their investments, the scheme will close down and the promoters will disappear. The investors will not get their money back.
I read your blog.
Have you heard about this UFUN (www.ufunclub.com)?
A lot of people (Spore, Msia, Thai) are investing and claim they are getting good returns in the first few months. Is this kind of investment safe?
They give dividends (in the form of e-token) to members and the returns are good.
They are inviting a lot of new members to join.
Each investment can be US$500, US$1000, US$5000, US$10000 and US$50000.
Pls comment if you know about this UFUN scheme and if some people have already fallen prey to this scheme.
REPLY
I have not heard about this scheme. My comments below apply to questionable schemes in general and are not related to this specific scheme.
I would advice people to avoid investing money in schemes that are not regulated by the authority. It is easy to give your money away, but quite difficult to get it back.
Even if you are getting back the return, in the form of dividends or principle, remember that the money that is used to pay you may come from the investments of other people. Similarly, your money may be used to pay off the earlier investors.
This type of scheme is called a Ponzi scheme. The Ponzi scheme will grow as more and more people join. Eventually, when there are more people wishing to withdraw their investments, the scheme will close down and the promoters will disappear. The investors will not get their money back.
3 comments:
Looks like a ponzi scheme to me too which Mr Tan suspects.
I consider investing in low cost index fund which Mr Tan has urged numerous times on his blog.
Current bull move since 2009 is about to end. Is 5 years old already. Buy in near the bottom of the recession.
Recent internet chatter is speculating the 2009 Equity bull run is now at its tail end, predicting a 20% correction.
Notice that Warren Buffet has stopped investing, and the Fed has indicated they would stop QE bond purchases in October, making this year the Great October crash the more scary. It dun help Moody's down grading our 3 local Banks saddled with expensive mortgage loans of past few years, also the Iraq civil war also very disturbing.
I think instead of investing in any of the markets one should try to earn profit by investing in forex market by getting Forex Signals from an advisory firm.
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